Monday, March 17, 2014

The Road Transport and Highways (RTH) Ministry is exploring options like real estate development along the Delhi-Jaipur Expressway to finance it as land cost alone has trebled after the new land acquisition law came into force.

The cost of ~11,750 project that included provision for land acquisition is likely to shoot up by at least ~30,000 crore as the land cost has trebled after the new law .

“The National Highways Authority of India (NHAI) has informed us that the cost of land alone for 272 km expressway would be about ~18,000 crore from the estimated ~6,000 crore,” a ministry official informed.

The development comes barely a month after the Prime Minister’s Office asked the RTH Ministry to move a Cabinet note for the project saying it would be the first such highway to be built by the central government.

“The Delhi-Jaipur Expressway is one of the announcements of the Prime Minister in November, 2013 which has been taken up as a priority project of the government. As on date, there is no expressway built by central government and Delhi-Jaipur Expressway would be the first,” a PMO statement had said.

The official said the Ministry is exploring ways for financing the project which may include development of real estate along the stretch or building it around the existing highway.

The Ministry has sought advise on possible financing modes from stake-holder states – Delhi, Rajasthan and Haryana, before proceeding on the project, the official added.

The Road Ministry has estimated the project cost for the Delhi-Jaipur Expressway at ~11,750 crore, including land acquisition and pre-construction activities.

RTH Minister Oscar Fernandes had earlier said that unless a major portion of the land is handed over in the construction of the proposed Delhi-Jaipur expressway, financial institutions could shy away from funding the project. — PTI